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What do you all think of the idea of shifting some money from MAPIX to MAPTX? I like the quarterly dividend at MAPIX, I really DO! What are the various pros and cons? Thanks. They both look quite good, but the universe each lives in is a bit different, no?
If you've studied the country and cap weighting and growth strategy and like it as good Asia diversification, then I'd say go for it - maybe cautiously at first so you don't get too much caught in a downdraft if one comes about. Maptx probably diversifies Mapix as well as any of their funds that are still open. Msmlx, the small cap fund, might be a little better for diversification, but it's closed, for the time being at least.
You might also keep an eye out for their Asia strategic income fund, which is supposed to break out of the gate by the end of this month.
MAPTX is Asia/Pac ex-Japan, and does not offer the consistent dividend. It would be higher risk than MAPIX and if previous years were any indication, not hold up as well if there was another 2008-style situation/significant down year. I think MACSX/MAPIX are fine and I think the Asia Strategic Income fund sounds interesting. I still hold a little MACSX and MSMLX, but not nearly the level I did in 2009/early 2010. That's not anything against the Matthews funds, but just a change in views and trying a new approach.
Personally, the long-termness (with bumps in the road) of a bet on Asia (and I think your view on that is similar) would lead me to stick with the compounding dividend plays of MAPIX, MACSX or the new fund rather than MAPTX. I definitely do not hold the level of emerging market investment that I did a couple of years ago, but am starting to look at a couple of funds (maybe a bit of EM real estate) and individual stocks again, including the Genting companies.
Max, just to be clear, my earlier comment assumed that you've done the DD, understand what Maptx is, and are willing to take on some risk for long-term Asian growth, which IMHO is still the most compelling investment thesis anywhere.
Maptx has slugs of $ in large caps in the 'more developed' Asia Pacific enclaves of Singapore, South Korea, Taiwan, and Hong Kong, so it's not too crazy on the growthy side of the aisle. It actually has the best 1-year Sharpe of any of the regional Matthews funds, and a lower standard deviation than some U.S. funds I follow. But you probably should consider options like the Etf Dem if you want wider exposure, but with about the same level of risk as Mapix.
OK, understood. And yes, I am about to be semi-retired, soon receiving reduced pension checks, monthly. My dividend payers are not yet being tapped for current income. I'm still planning for quite a while to keep those dividends growing and compounding in the tax-sheltered retirement vehicles where they already reside. Thanks, guys.
I DO like Matthews with regard to their funds' performance. I suppose the input I've received from you all leads me to stick with MAPIX. It's just that I am acutely aware of how overloaded I am there. I hold 43% of my whole portfolio in that one, single fund. With regard to customer service, Matthews has their head up their ass. And it's because they've farmed-out customer "service" to BNY Mellon. Their customer "service" is a lousy joke played on the ones who invest their money with Matthews. At this very moment, I'm trying to get something resolved with them. I QUIT dealing with the alleged "customer service" BNY-Mellon people. Their true name ought to be: "Customer Rage and Aggravation-Producing" team. I've got a couple of calls in to the HQ in S.F.
I do think that 43% in any one fund is extreme (and having considerably more than 50% in one sector/country/region) and while MAPTX may not be right, you could explore something like Pimco's new Multi-Asset Emerging (EM Stock, EM Debt and EM local debt) or the ETF FEO (although FEO is volatile, but it pays a nice divy).
I don't know about dealing with fund-specific CS, but I personally would rather deal with a broker and be able to easily get the selection in one place (but that's just me.)
I agree with Scott that 43% on one fund, sector is risky. I think while the portfolio is different, MAPTX will probably not going to give you enough diversification either as you will still be heavily leveraged to the region and I suspect you will get even less support from dividends if you switch to MAPTX on a market decline.
Why don't you post your current portfolio in full here (percentages only) and let us opine where you are missing coverage. For example you did not have much bonds and when you added bonds you again chose an emerging markets bonds. You need more diversification than this, especially if you are going to retire. When you are working you can make up for losses but in retirement you need to be more conservative and I have the feeling you are taking too much risk by concentrating to a few sectors.
BTW, How old are you? In my mind you were still too young to retire but I could be wrong. I remember you had lost your job this year. Is that leading you to retirement?
An aggressive retirement portfolio suggestion overweight Asia (just something I came up with as a random suggestion) 15% MAPIX 15% MACSX 15% TEGBX 15% SGIIX (or whatever share class) 15% FPACX 5% PCRRX 10% RNSIX 10% PAUDX
I am grateful for your obviously sincere concern. I admit my portfolio is truly NOT what I would like it to look like at the moment... I am not dismissing your offer to assist with allocation advice. It's just that right now, I am anticipating---along with my brothers, sisters and cousins--- some inheritance money. (Bless my beloved aunt, who never married or had kids of her own!) Instead of revamping soon and then AGAIN later on, I figured I'd wait to get that cash and then deploy it in a way that will truly diversify me further.
Nothing is ever ideal for any of us, I know. I have to "admit" to you that in my portfolio at the moment, I'm holding ZERO cash. My circumstances have ALWAYS been so---- able to invest through 403b at work, but therefore, I've always been "cash-poor." If I had a big lump of greenbacks, I could buy into "this" fund or "that" fund without any delay, whenever the time seemed right. (By that, I DO NOT mean that I'm trying to TIME the Market.)............ In fact, one piece of my portfolio I might choose to cover is just to hold MONEY in a bank account, just so ALL my money is not already tied-up.
For the record: You know of my conviction about Asia, and how all good things are moving toward the Orient and South Asia. The West is dead, over the long haul, and the recent ('08) Financial Crash is not the reason, it is just another brick in the wall.
Here's what I'm holding right now: 1) Cash: 0% 2) MAPIX: 34.24% (Trad. IRA) 3) PREMX: 41.83% (rollover IRA from old 403b) 4) MACSX: 3.12% (regular, taxable investment account) 5) PFE (Pfizer) ---already a piece of the inheritance: 14.83% 6) Israel government zero-coupon bond: pays 5.68%, almost doubling my money at maturity, bought in 2003 and maturing in 2013.
I've not sold the Pfizer and done something else with it because of its good reputation and .20 cent quarterly dividend, though I HATE the very idea of making money off a human necessity: drugs and healthcare.
I invested in the Israel bond before some events which transpired soon afterward which would have steered me away from that particular investment. I turned down the offer a couple of years ago to cash it in early with no penalty.
I have such a big stake in (TRP) PREMX EM Bond at the moment because I rolled-over my (TRP) PRLAX Latin America shares into PREMX when I decided it was time to get rid of PRLAX. I made about 11% or so on my PRLAX stake, but for a period of a few months in '10, it was doing nothing, and I was already late for the huge rise in share price during '09.
Back in '10, I was also holding PRSVX TRP small-cap value fund. I'd held it through thick and thin for about 5 years or so, and it is really an index-hugger. I was sick of its do-nothing performance; I was not going to lose anything (except diversification) by rolling it into PREMX; and after rolling-over the PRSVX into PREMX this past July, I avoided the outrageous 100% jump in the annual extortion ("admin.") fee, which gets charged in August, rather than December, most everywhere else. Now, I've got so many PREMX shares, I'm not charged at all for the annual extortion fee.
But I'm not trying to be "penny wise but pound foolish." I'm certainly NOT satisfied with the very limited way my portfolio is spread-out. I fully intend to find some other sorts of things in which to invest, once the cash comes through.
My short-list includes MWHYX, QRSVX, DODIX, PRSNX. I don't feel embarrassed to say that everything I'm discussing comes to just over $100,000.00 currently, so a LOT more diversification would only accomplish DILUTING my earnings. I mean, it would be very easy to over-do the whole diversification thing.
I prefer to (eventually) get to a 60% bonds and 30% stock and 10% cash portfolio. At this moment in time, I'm sitting on 52.25% equities and 47.74% bonds. I have the EM bonds piece covered (PREMX). I have Asia equities covered (MAPIX and MACSX). I am into the Dow 30 with Pfizer. That single foreign-gov't bond is a specialty item, but is as safe as safe can be. I'd like to find a monthly income-producer in a domestic bond fund which offers better than a lousy 2 cents per share.
All my retirement funds are still not being tapped yet. I have a (new) job and income on which I can live. I'm out of church work now. I am not yet OFFICIALLY retired, but that is already in the works. I am 57. The monthly retirement checks will be invested, not spent. (Less than $500/month, anyhow---in a traditional defined-benefit plan which ostensibly will last until I die. After that, wifey will receive an even BIGGER monthly benefit.)
This is TOO thorough. Thanks for your kind attention and sage advice.
Here's what I'm holding right now: 1) Cash: 0% 2) MAPIX: 34.24% (Trad. IRA) 3) PREMX: 41.83% (rollover IRA from old 403b) 4) MACSX: 3.12% (regular, taxable investment account) 5) PFE (Pfizer) ---already a piece of the inheritance: 14.83% 6) Israel government zero-coupon bond: pays 5.68%, almost doubling my money at maturity, bought in 2003 and maturing in 2013.
Problem with your portfolio is that your portfolio is missing the core asset classes. You tend to invest in supporting asset classes before you invest in core classes.
I think you are missing a good general purpose bond fund such as MWTRX or TGMNX. You intend to add a bond fund but you are looking to the HY type. I think HY should have supporting role, not core. However, I would consider holding a small amount (~5%) on RPHYX.
I think PFE is a good stock but nevertheless it can't replace an asset class. Over time I would replace it slowly with something like YAFFX or YACKX.
I would also add a general purpose international fund such as ARTKX or ARTGX.
If you are concerned about pure stock or bond asset classes, consider balanced funds to replace a portion of your holdings. Consider: FPACX, PRPFX, OAKBX, GLRBX, BERIX.
You're right. I will research the funds you've suggested. Interesting, how accurate you were: you said it looked like I had lotsa "supporting players" without CORE-type holdings. Yes, that's what I've been doing. My next move will certainly be to add some ballast.
I definitely like Asia, but I think for me it's a matter of comfort and almost "putting away" investments. I have a similar belief to you that Asia will do well over time, but I think rather than being heavily in Asia (which I was about 2 years ago), I have a mixture of a few Asian stocks and funds (the largest investment being Jardine Matheson, which I've discussed before) and they are to a point where I can feel comfortable and the day-to-day is not entirely reliant upon what Asia did last night. I don't want to be heavily in US stocks, either, but I think there are global managers who I do trust to move money around the globe as they see fit - RIT Capital Partners (which is a London fund) is one I love, but the First Eagle Global/Overseas and Ivy Asset Strategy funds in the US would definitely be other good options (particularly First Eagle)
I definitely will be the first to admit that I have to keep myself from getting too into certain investments and at least have some sort of loose "cap" in mind for a particular investment. I think one can be overweight during the initial period of a particular thesis/theme, then pull back a bit to a more normal weight for what is believed to be the remainder of a long-term idea.
I believe there is a pink sheet/foreign ordinary share version (RITPF.pk), but it is EXTREMELY thinly traded/illiquid (definitely at your own risk) and some brokerages do charge extra (commission + additional fee, which varies) for trading in foreign ordinary shares (symbol ends w/"F") on the pink sheets.
Comments
If you've studied the country and cap weighting and growth strategy and like it as good Asia diversification, then I'd say go for it - maybe cautiously at first so you don't get too much caught in a downdraft if one comes about. Maptx probably diversifies Mapix as well as any of their funds that are still open. Msmlx, the small cap fund, might be a little better for diversification, but it's closed, for the time being at least.
You might also keep an eye out for their Asia strategic income fund, which is supposed to break out of the gate by the end of this month.
Yet another satisfied Matthews customer,
AJ
Personally, the long-termness (with bumps in the road) of a bet on Asia (and I think your view on that is similar) would lead me to stick with the compounding dividend plays of MAPIX, MACSX or the new fund rather than MAPTX. I definitely do not hold the level of emerging market investment that I did a couple of years ago, but am starting to look at a couple of funds (maybe a bit of EM real estate) and individual stocks again, including the Genting companies.
Maptx has slugs of $ in large caps in the 'more developed' Asia Pacific enclaves of Singapore, South Korea, Taiwan, and Hong Kong, so it's not too crazy on the growthy side of the aisle. It actually has the best 1-year Sharpe of any of the regional Matthews funds, and a lower standard deviation than some U.S. funds I follow. But you probably should consider options like the Etf Dem if you want wider exposure, but with about the same level of risk as Mapix.
I DO like Matthews with regard to their funds' performance. I suppose the input I've received from you all leads me to stick with MAPIX. It's just that I am acutely aware of how overloaded I am there. I hold 43% of my whole portfolio in that one, single fund. With regard to customer service, Matthews has their head up their ass. And it's because they've farmed-out customer "service" to BNY Mellon. Their customer "service" is a lousy joke played on the ones who invest their money with Matthews. At this very moment, I'm trying to get something resolved with them. I QUIT dealing with the alleged "customer service" BNY-Mellon people. Their true name ought to be: "Customer Rage and Aggravation-Producing" team. I've got a couple of calls in to the HQ in S.F.
I do think that 43% in any one fund is extreme (and having considerably more than 50% in one sector/country/region) and while MAPTX may not be right, you could explore something like Pimco's new Multi-Asset Emerging (EM Stock, EM Debt and EM local debt) or the ETF FEO (although FEO is volatile, but it pays a nice divy).
I don't know about dealing with fund-specific CS, but I personally would rather deal with a broker and be able to easily get the selection in one place (but that's just me.)
Max,
I agree with Scott that 43% on one fund, sector is risky. I think while the portfolio is different, MAPTX will probably not going to give you enough diversification either as you will still be heavily leveraged to the region and I suspect you will get even less support from dividends if you switch to MAPTX on a market decline.
Why don't you post your current portfolio in full here (percentages only) and let us opine where you are missing coverage. For example you did not have much bonds and when you added bonds you again chose an emerging markets bonds. You need more diversification than this, especially if you are going to retire. When you are working you can make up for losses but in retirement you need to be more conservative and I have the feeling you are taking too much risk by concentrating to a few sectors.
BTW, How old are you? In my mind you were still too young to retire but I could be wrong. I remember you had lost your job this year. Is that leading you to retirement?
15% MAPIX
15% MACSX
15% TEGBX
15% SGIIX (or whatever share class)
15% FPACX
5% PCRRX
10% RNSIX
10% PAUDX
I am grateful for your obviously sincere concern. I admit my portfolio is truly NOT what I would like it to look like at the moment... I am not dismissing your offer to assist with allocation advice. It's just that right now, I am anticipating---along with my brothers, sisters and cousins--- some inheritance money. (Bless my beloved aunt, who never married or had kids of her own!) Instead of revamping soon and then AGAIN later on, I figured I'd wait to get that cash and then deploy it in a way that will truly diversify me further.
Nothing is ever ideal for any of us, I know. I have to "admit" to you that in my portfolio at the moment, I'm holding ZERO cash. My circumstances have ALWAYS been so---- able to invest through 403b at work, but therefore, I've always been "cash-poor." If I had a big lump of greenbacks, I could buy into "this" fund or "that" fund without any delay, whenever the time seemed right. (By that, I DO NOT mean that I'm trying to TIME the Market.)............ In fact, one piece of my portfolio I might choose to cover is just to hold MONEY in a bank account, just so ALL my money is not already tied-up.
For the record: You know of my conviction about Asia, and how all good things are moving toward the Orient and South Asia. The West is dead, over the long haul, and the recent ('08) Financial Crash is not the reason, it is just another brick in the wall.
Here's what I'm holding right now:
1) Cash: 0%
2) MAPIX: 34.24% (Trad. IRA)
3) PREMX: 41.83% (rollover IRA from old 403b)
4) MACSX: 3.12% (regular, taxable investment account)
5) PFE (Pfizer) ---already a piece of the inheritance: 14.83%
6) Israel government zero-coupon bond: pays 5.68%, almost doubling my money at maturity, bought in 2003 and maturing in 2013.
I've not sold the Pfizer and done something else with it because of its good reputation and .20 cent quarterly dividend, though I HATE the very idea of making money off a human necessity: drugs and healthcare.
I invested in the Israel bond before some events which transpired soon afterward which would have steered me away from that particular investment. I turned down the offer a couple of years ago to cash it in early with no penalty.
I have such a big stake in (TRP) PREMX EM Bond at the moment because I rolled-over my (TRP) PRLAX Latin America shares into PREMX when I decided it was time to get rid of PRLAX. I made about 11% or so on my PRLAX stake, but for a period of a few months in '10, it was doing nothing, and I was already late for the huge rise in share price during '09.
Back in '10, I was also holding PRSVX TRP small-cap value fund. I'd held it through thick and thin for about 5 years or so, and it is really an index-hugger. I was sick of its do-nothing performance; I was not going to lose anything (except diversification) by rolling it into PREMX; and after rolling-over the PRSVX into PREMX this past July, I avoided the outrageous 100% jump in the annual extortion ("admin.") fee, which gets charged in August, rather than December, most everywhere else. Now, I've got so many PREMX shares, I'm not charged at all for the annual extortion fee.
But I'm not trying to be "penny wise but pound foolish." I'm certainly NOT satisfied with the very limited way my portfolio is spread-out. I fully intend to find some other sorts of things in which to invest, once the cash comes through.
My short-list includes MWHYX, QRSVX, DODIX, PRSNX. I don't feel embarrassed to say that everything I'm discussing comes to just over $100,000.00 currently, so a LOT more diversification would only accomplish DILUTING my earnings. I mean, it would be very easy to over-do the whole diversification thing.
I prefer to (eventually) get to a 60% bonds and 30% stock and 10% cash portfolio. At this moment in time, I'm sitting on 52.25% equities and 47.74% bonds. I have the EM bonds piece covered (PREMX). I have Asia equities covered (MAPIX and MACSX). I am into the Dow 30 with Pfizer. That single foreign-gov't bond is a specialty item, but is as safe as safe can be. I'd like to find a monthly income-producer in a domestic bond fund which offers better than a lousy 2 cents per share.
All my retirement funds are still not being tapped yet. I have a (new) job and income on which I can live. I'm out of church work now. I am not yet OFFICIALLY retired, but that is already in the works. I am 57. The monthly retirement checks will be invested, not spent. (Less than $500/month, anyhow---in a traditional defined-benefit plan which ostensibly will last until I die. After that, wifey will receive an even BIGGER monthly benefit.)
This is TOO thorough. Thanks for your kind attention and sage advice.
I think you are missing a good general purpose bond fund such as MWTRX or TGMNX. You intend to add a bond fund but you are looking to the HY type. I think HY should have supporting role, not core. However, I would consider holding a small amount (~5%) on RPHYX.
I think PFE is a good stock but nevertheless it can't replace an asset class. Over time I would replace it slowly with something like YAFFX or YACKX.
I would also add a general purpose international fund such as ARTKX or ARTGX.
If you are concerned about pure stock or bond asset classes, consider balanced funds to replace a portion of your holdings. Consider: FPACX, PRPFX, OAKBX, GLRBX, BERIX.
I definitely will be the first to admit that I have to keep myself from getting too into certain investments and at least have some sort of loose "cap" in mind for a particular investment. I think one can be overweight during the initial period of a particular thesis/theme, then pull back a bit to a more normal weight for what is believed to be the remainder of a long-term idea.